Roseberry Care Centres GB Limited - Period Ending 2021-12-31
Roseberry Care Centres GB Limited - Period Ending 2021-12-31
Registration number:
Roseberry Care Centres GB Limited
for the Year Ended 31 December 2021
Roseberry Care Centres GB Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Roseberry Care Centres GB Limited
Company Information
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Directors |
Mr M Dumble Mrs M J Auckland Mrs J D Thomas |
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Company secretary |
Ms M Summerson |
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Registered office |
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Solicitors |
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Bankers |
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Auditor |
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Roseberry Care Centres GB Limited
Strategic Report for the Year Ended 31 December 2021
The directors present their strategic report for the year ended 31 December 2021.
Principal activity
The principal activity of the company is the running of care homes.
Fair review of the business
Roseberry Care Centres GB Limited is a care home operator providing residential and nursing care, primarily across the north of England. At the date of the accounts the company were caring for approximately 620 residents in 14 care settings.
The Company's profit on ordinary activities before tax for the year ended 31st December 2021 amounted to £2,120,505 (2020 £2,829,501 profit).
The company had net assets of £2,115,370 (2020 £2,145,228).
During the year the company reinvested £760,000 of capital expenditure back into its homes. This investment has facilitated a high standard of refurbishment throughout the homes.
The board of Roseberry Care Centres GB Limited recommended the payment of an interim dividend of £1.7m (2020 £nil) to its parent company, namely Cleveland Healthcare Group Limited. This was an accounting exercise to clear up historic intercompany balances.
The board have not recommended the payment of a final dividend (2020 £nil).
The company's key financial and other performance indicators during the year were as follows:
|
Unit |
2021 |
2020 |
|
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Occupancy |
% |
86 |
92 |
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Average weekly fee |
£ |
725 |
685 |
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Staffing costs as % of fee income* |
% |
62 |
60 |
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Home running costs as % of fee income* |
% |
15 |
15 |
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Rent cover ratios* |
2 |
2 |
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EBITDAR as % of fee income* |
% |
24 |
25 |
*Note the above ratios exclude grant income and COVID-19 support payments.
In addition to the above, the company also closely monitors and acts upon inspections by the regulator and its two dedicated quality inspection managers which has clearly resulted in an improvement to its CQC (Care Quality Commission) ratings. At the date of the accounts 9 out of 14 of the company's care homes were rated 'Good' with the CQC.
Roseberry Care Centres GB Limited
Strategic Report for the Year Ended 31 December 2021 (continued)
Going concern
The company’s going concern is dependent on the overall going concern position of the parent group, namely Cleveland Healthcare Group Ltd.
The Directors have reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. The Directors therefore believe it is appropriate to prepare the financial statements on a going concern basis.
At 31 December 2021 the company reported net current assets of £1,024,106 and net assets of £2,115,370.
Throughout 2021 the Covid-19 pandemic continued to have an impact on the company’s operations. Thankfully, as a result of mass vaccinations, death rates amongst our residents were significantly down on those seen in 2020. However there were increased costs brought about by a reduction in admissions and costs associated with covering staff absences and restricting the movement of staff.
Government and some local councils continued to recognised these pressures and provided appropriate levels of financial support by way of awarding temporary increases in fees, paying for void beds, providing PPE and making available infection control and workforce grants.
At the date of these financial statements we have seen a significant reduction in Covid-19 infections amongst residents and staff, and life in our homes seems to be returning to a more usual feel. The company has traded strongly throughout the pandemic and has been robust during the biggest challenge ever faced by the care sector. As at the balance sheet date, it has a strong balance sheet and cash reserves.
Based on the above indications the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. Forecasts for the next 12 months have been prepared which assume a certain level of occupancy and taking into account reasonable possible changes in trading performance, the company is expected to have sufficient level of financial resource available through the next 12 months. Therefore after making enquiries, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for the foreseeable future. Accordingly, they continue to prepare the financial statements on a going concern basis.
Roseberry Care Centres GB Limited
Strategic Report for the Year Ended 31 December 2021 (continued)
Principal risks and uncertainties
The company has an established and structured approach to risk management. The company's activities expose it to a variety of financial risks and it has adopted risk management policies that seek to mitigate these risks in a cost effective manner.
Credit risk
The company's main financial assets are bank balances, cash and trade receivables. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The company's largest customers are primarily local councils with social services responsibilities and NHS clinical commissioning groups.
Liquidity risk
The company has continued to maintain liquidity and sufficient working capital for its ongoing operations and future developments.
Operational risks
The company's activities expose it to a number of operational risks including reputation and of a regulatory nature.
Reputational risk
In order to mitigate this risk the company delivers a comprehensive package of employee training as well as performance management via formal and informal meetings with all of its employees. In addition the management team have improved and strengthened the collaborative working relationships with local authority and NHS commissioners.
Regulatory risk
In order to mitigate this risk the group has employed two dedicated quality inspection managers who carry out mock inspections and provide action plans where appropriate. The group has also invested in additional regional support managers who’s role is to support the regional operations managers and the homes within that region, in order to maintain and improve regulatory compliance and to develop improved commercial business strategies as directed by senior management.
Other risk
The group employs dedicated regional administrators who carry out unannounced financial audits in the homes. This establishes that financial procedures are being carried out in line with group policies and helps to mitigate the risk of potential financial fraud.
Future developments
The company will continue to seek to add growth by challenging and reviewing its current operations and carefully considering any potential, targeted acquisitions.
Approved and authorised by the
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Roseberry Care Centres GB Limited
Directors' Report for the Year Ended 31 December 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Financial instruments
Objectives and policies
The company finances its activities with a combination of working capital and loans from related parties. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities. See disclosures in the Strategic Report in respect of the financial risk management of the Company.
Employment of disabled persons
The Company gives full consideration to applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.
Where existing employees become disabled, it is the Company's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.
Employee involvement
During the year, the policy of providing employees with information about the Company has continued through internal media methods in which employees are encouraged to present their suggestions and views on the Company's performance. Regular meetings are held between local management and employees to allow free flow of information and ideas.
Future developments
See disclosures within the Strategic Report regarding future developments of the Company.
Going concern
The impact of COVID-19 upon the company is included in the Strategic Report and Note 2.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Roseberry Care Centres GB Limited
Directors' Report for the Year Ended 31 December 2021 (continued)
Reappointment of auditor
Azets Audit Services Limited, trading as Azets Audit Services, were appointed auditor to the company following their acquisition of the trade of Tait Walker LLP, trading as MHA Tait Walker, on 1 May 2022.
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
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Roseberry Care Centres GB Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Roseberry Care Centres GB Limited
Independent Auditor's Report to the Members of Roseberry Care Centres GB Limited
Opinion
We have audited the financial statements of Roseberry Care Centres GB Limited (the 'company') for the year ended 31 December 2021, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Roseberry Care Centres GB Limited
Independent Auditor's Report to the Members of Roseberry Care Centres GB Limited (continued)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness; |
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enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud; |
Roseberry Care Centres GB Limited
Independent Auditor's Report to the Members of Roseberry Care Centres GB Limited (continued)
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challenging assumptions and judgements made by management in their significant accounting estimates; |
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auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and |
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reviewing financial statement disclosures and testing to support documentation. |
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Social Care Act 2008, Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Statutory Auditor
Chartered Accountants
1 Massey Road
Thornaby
TS17 6DY
Azets Audit Services is a trading name of Azets Audit Services Limited
Roseberry Care Centres GB Limited
Income Statement for the Year Ended 31 December 2021
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Note |
2021 |
2020 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Interest payable and similar expenses |
( |
( |
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Profit before tax |
|
|
|
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Taxation |
( |
( |
|
|
Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Roseberry Care Centres GB Limited
(Registration number: 06281674)
Statement of Financial Position as at 31 December 2021
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Note |
2021 |
2020 |
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Fixed assets |
|||
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Tangible assets |
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Current assets |
|||
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
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Total assets less current liabilities |
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|
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Creditors: Amounts falling due after more than one year |
- |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
|||
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Called up share capital |
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Profit and loss account |
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Total equity |
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Approved and authorised by the
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Roseberry Care Centres GB Limited
Statement of Changes in Equity for the Year Ended 31 December 2021
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Share capital |
Profit and loss account |
Total |
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At 1 January 2020 |
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( |
( |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 December 2020 |
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Share capital |
Profit and loss account |
Total |
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At 1 January 2021 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
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At 31 December 2021 |
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Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
These financial statements are presented in sterling which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
The Company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
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Accounting policies (continued) |
Going concern
The company’s going concern is dependent on the overall going concern position of the parent group, namely Cleveland Healthcare Group Ltd.
The Directors have reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. The Directors therefore believe it is appropriate to prepare the financial statements on a going concern basis.
At 31 December 2021 the company reported net current assets of £1,024,106 and net assets of £2,115,370.
Throughout 2021 the Covid-19 pandemic continued to have an impact on the company’s operations. Thankfully, as a result of mass vaccinations, death rates amongst our residents were significantly down on those seen in 2020. However there were increased costs brought about by a reduction in admissions and costs associated with covering staff absences and restricting the movement of staff. Government and some local councils continued to recognised these pressures and provided appropriate levels of financial support by way of awarding temporary increases in fees, paying for void beds, providing PPE and making available infection control and workforce grants.
At the date of these financial statements we have seen a significant reduction in Covid-19 infections amongst residents and staff, and life in our homes seems to be returning to a more usual feel. The company has traded strongly throughout the pandemic and has been robust during the biggest challenge ever faced by the care sector. As at the balance sheet date, it has a strong balance sheet and cash reserves.
Based on the above indications the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. Forecasts for the next 12 months have been prepared which assume a certain level of occupancy and taking into account reasonable possible changes in trading performance, the company is expected to have sufficient level of financial resource available through the next 12 months. Therefore after making enquiries, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for the foreseeable future. Accordingly, they continue to prepare the financial statements on a going concern basis.
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
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Accounting policies (continued) |
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. |
Assessing nature of lease - The Company has entered into commercial leases and as a lessee it obtains use of property, plant and equipment. The classification as operating or finance lease requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. |
Taxation - Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation. The carrying amount is £2,817,499 (2020 - £2,309,442).
Impairment of debtors - The company makes an estimate of the recoverable value of the trade and other debtors. When assessing impairment of trade and other debtor, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Revenue recognition
Revenue from providing nursing and care services is measured by reference to period of occupancy.
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
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Accounting policies (continued) |
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grant will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the assets expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the assets carrying amount.
Government grants included within other operating income includes the UK Government assistance provided through Coronavirus Job Retention Scheme and the Adult Social Care Infection Control Fund during the Covid-19 pandemic.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
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Accounting policies (continued) |
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Asset class |
Depreciation method and rate |
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Long leasehold property |
4 years straight line |
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Plant and machinery |
4 years straight line |
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Fixtures and fittings |
4 years straight line |
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Motor vehicles |
4 years straight line |
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Equipment |
4 years straight line |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stock, consisting of consumables and cleaning supplies, are recorded at cost.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
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Accounting policies (continued) |
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2021 |
2020 |
|
|
Provision of nursing and care services |
|
|
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2021 |
2020 |
|
|
Government grants |
|
|
|
Management charges receivable |
- |
455,549 |
|
|
|
Government grants consist of the Coronavirus Job Retention Scheme and the Adult Social Care Infection Control Fund grants.
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Operating profit |
Arrived at after charging/(crediting)
|
2021 |
2020 |
|
|
Depreciation expense |
|
|
|
Operating lease rentals |
|
|
|
Interest payable and similar expenses |
|
2021 |
2020 |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2021 |
2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2021 |
2020 |
|
|
Care staff |
|
|
|
Administrative staff |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
185,678 |
216,906 |
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
8 |
Directors' remuneration (continued) |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2021 |
2020 |
|
|
Accruing benefits under defined benefit pension scheme |
|
|
In respect of the highest paid director:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Auditor's remuneration |
|
2021 |
2020 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the income statement
|
2021 |
2020 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
10 |
Taxation (continued) |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2021 |
2020 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease from effect of different UK tax rates on some earnings |
- |
( |
|
Effect of revenues exempt from taxation |
( |
- |
|
Deferred tax expense relating to changes in tax rates or laws |
|
- |
|
Tax decrease arising from group relief |
- |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
- |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2021 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
216,276 |
|
Other timing differences |
|
- |
|
|
216,276 |
|
2020 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Other timing differences |
|
- |
|
|
107,534 |
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Tangible assets |
|
Long leasehold property |
Fixtures and fittings |
Plant and machinery |
Equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 January 2021 |
|
|
|
|
|
|
|
Additions |
|
|
|
|
- |
|
|
At 31 December 2021 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 January 2021 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
- |
|
|
At 31 December 2021 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 December 2021 |
|
|
|
|
- |
|
|
At 31 December 2020 |
|
|
|
|
- |
|
The amounts capitalised as Long leasehold property consist entirely of improvements made to leased properties.
|
Stocks |
|
2021 |
2020 |
|
|
Food and cleaning materials |
|
|
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Debtors |
|
2021 |
2020 |
|
|
Trade debtors |
838,312 |
778,431 |
|
Amounts owed by group undertakings |
506,224 |
2,151,778 |
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Creditors |
|
Note |
2021 |
2020 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
- |
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accruals and deferred income |
|
|
|
|
Corporation tax liability |
127,653 |
429,510 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
- |
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2021 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 December 2021 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Roseberry Care Centres GB Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
Interim dividends paid
|
2021 |
2020 |
|||
|
Interim dividend of £ |
|
- |
||
|
Related party transactions |
The Company has taken advantage of the the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is